CARIBBEAN UTILITIES COMPANY,
LTD. CLASS A ORDINARY SHARES ARE LISTED FOR TRADING IN UNITED STATES FUNDS ON THE TORONTO STOCK
EXCHANGE.
GRAND CAYMAN, Cayman Islands, Oct.
30, 2015 /CNW/ - Caribbean Utilities Company, Ltd. (TSX:
CUP.U) ("CUC" or "the Company") and the Electricity Regulatory
Authority of the Cayman Islands
(ERA) announced today that following a comprehensive review, the
ERA has approved a Power Purchase Agreement (PPA) proposed by CUC
for a 5 megawatt (MW) plant to be built by Entropy Cayman Solar
Limited in the district of Bodden Town.
The 5 MW Solar project will provide energy to power
approximately 800 homes with clean renewable solar energy and will
significantly reduce emissions into the atmosphere through the
avoidance of diesel fuel consumption. The PPA will also provide
renewable energy at a competitive initial price of CI 14.28 cents (US 17.00
cents) per kilowatt hour (kWh).
In August 2011, CUC issued an
invitation to interested parties to submit an Expression of
Interest and Preliminary Proposal for the financing, construction,
ownership and operation of renewable energy generation facilities.
CUC evaluated the proposals on both technical and financial merits
in order to achieve the overall renewable generating capacity
objective without compromising the reliability and stability of its
electricity system. International Electric Power LLC (IEP) was
selected after conducting the evaluation process but subsequently
transferred all rights for this project to an affiliate of Entropy
Cayman Solar Limited.
President and CEO of CUC, Richard
Hew, said, "We are very pleased that we have reached this
stage of the project. This has been a prolonged but necessary
process to ensure that we secured the right partner who could meet
our goal to bring large-scale renewable energy to Grand Cayman's electricity consumers. This
project will provide clean energy at a competitive and stable price
to consumers and represents a large step in the ongoing development
of a diversified and environmentally sustainable energy sector. As
solar energy is intermittent, firm generation sources such as
diesel powered generation are required to provide stable power to
the grid. We look forward to the completion of the construction
phase of this solar project and to connecting a new large scale
energy source to our electricity grid. "
ERA Managing Director, Charles
Farrington, said, "The ERA is extremely happy to approve the
first of what we hope will be many utility scale renewable energy
projects to replace fossil fuel generated electricity. Our
consultants have evaluated the levelized cost of this energy to be
approximately CI 16 cents (US
19 cents) per kWh over the 25 year
life of the PPA. Over that period we expect that this cost
will lower consumers' costs compared to diesel whilst eliminating
the price volatility and greenhouse gas emissions of the fossil
fuel displaced. The ERA is also pleased to welcome Entropy
Cayman Solar as a new Generation Licensee and we look forward to a
long and mutually beneficial relationship on behalf of Grand Cayman electricity consumers. The
ERA is now turning its attention to developing a new RFP for
additional utility scale solar resources for Grand Cayman's electricity grid. "
David March, Managing Partner of
Entropy Investment Management (Entropy), the company managing the
project, said, "Entropy considers this solar facility the first
step in a new energy future for the Cayman Islands and we are excited to be a
contributing partner in the country's quest for sustainable and
renewable energy independence. Throughout the process, the ERA and
CUC displayed great foresight, leadership and an unwavering
commitment to ensure that this project was in the best interests of
the Cayman people. Strong foundations make enduring partnerships
and Entropy looks forward to working with the ERA and CUC to
develop additional energy cost saving projects."
The project is now on schedule to be completed by October 2016.
The Generating Facility will be built on a 20 acre site in
Bodden Town and comprises 21,690 poly-crystalline photovoltaic
(solar) modules each with a DC-rated capacity of 305 watts and will
be connected to CUC's Bodden Town substation.
CUC provides electricity to Grand
Cayman, Cayman Islands,
under a non-exclusive Electricity Generation Licence expiring in
2039 and an exclusive Electricity Transmission and Distribution
Licence expiring in 2028. Further information is available at
www.cuc-cayman.com.
Caribbean Utilities Company, Ltd. ("CUC" or "the Company"),
on occasion, includes forward-looking statements in its media
releases, Canadian securities regulatory authorities filings,
shareholder reports and other communications. Forward-looking
statements include statements that are predictive in nature, depend
upon future events or conditions, or include words such as
"expects", "anticipates", "plan", "believes", "estimates",
"intends", "targets", "projects", "forecasts", "schedule", or
negative versions thereof and other similar expressions, or future
or conditional verbs such as "may", "will", "should", "would" and
"could". Forward-looking statements are based on underlying
assumptions and management's beliefs, estimates and opinions, and
are subject to certain risks and uncertainties surrounding future
expectations generally that may cause actual results to vary from
plans, targets and estimates. Such risks and uncertainties include
but are not limited to operational, general economic, market and
business conditions, regulatory developments and weather
conditions. CUC cautions readers that actual results may vary
significantly from those expected should certain risks or
uncertainties materialize or should underlying assumptions prove
incorrect. Forward-looking statements are provided for the purpose
of providing information about management's current expectations
and plans relating to the future. Readers are cautioned that such
information may not be appropriate for other purposes. The Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise except as required by law.
SOURCE Caribbean Utilities Company, Ltd.